Final expense insurance is a type of life insurance that covers funeral and burial expenses. It is often used by seniors who want to ensure their end-of-life expenses are covered without burdening their loved ones. However, choosing the right final expense insurance policy can be overwhelming, with so many options available in the market. In this article, we will guide you through the best final expense insurance options, their features, benefits, and costs.
What is Final Expense Insurance?
Final expense insurance, also known as burial or funeral insurance, is a type of life insurance designed to cover the expenses associated with a person’s death. Unlike traditional life insurance policies that typically provide a lump sum payment to beneficiaries, final expense insurance policies pay a predetermined amount to cover the costs of funeral services, burial or cremation, and other related expenses.
Final expense insurance is typically purchased by seniors, as it offers affordable premiums and guaranteed approval without requiring a medical exam. The policies are usually issued with a death benefit between $5,000 to $25,000, although some policies may offer higher coverage amounts.
Types of Final Expense Insurance
There are two main types of final expense insurance policies: simplified issue and guaranteed issue.
Simplified Issue Final Expense Insurance
Simplified issue final expense insurance policies require applicants to answer a few health questions, but do not require a medical exam. These policies are designed for seniors with relatively good health who want to secure affordable coverage. Simplified issue policies typically have lower premiums than guaranteed issue policies, but may have coverage limits and exclusions for pre-existing health conditions.
Guaranteed Issue Final Expense Insurance
Guaranteed issue final expense insurance policies are designed for seniors who may have pre-existing health conditions or a history of medical issues. These policies do not require medical exams or health questions, but typically have higher premiums and lower coverage limits than simplified issue policies. Guaranteed issue policies may also have a waiting period before the death benefit is paid out.
Top Final Expense Insurance Providers
There are several final expense insurance providers in the market, each with their own features, benefits, and costs. Here are some of the best final expense insurance options to consider:
1. Mutual of Omaha
Mutual of Omaha is a highly-rated insurance provider that offers several final expense insurance options, including whole life insurance and simplified issue and guaranteed issue policies. The policies offer coverage amounts between $2,000 to $40,000, with no medical exam required for simplified issue policies. Mutual of Omaha also offers riders that can be added to policies for additional coverage, such as accidental death and dismemberment insurance.
2. AIG
AIG is another well-known insurance provider that offers comprehensive final expense insurance policies. The policies provide coverage between $5,000 to $25,000, with simplified underwriting for applicants between 50 to 85 years old. AIG also allows policyholders to access a portion of their death benefit to pay for qualifying long-term care expenses.
3. Globe Life
Globe Life is a respected insurance provider that offers affordable final expense insurance policies with flexible premiums and coverage amounts between $5,000 to $100,000. The policies provide guaranteed acceptance for applicants between 50 to 85 years old, with no medical exam or health questions required. Globe Life also offers a range of riders that can be added to policies, including accidental death insurance and child/grandchild coverage.
How to Choose the Best Final Expense Insurance Policy
Choosing the right final expense insurance policy can be a daunting task, but it’s important to find coverage that meets your specific needs and budget. Here are some factors to consider when selecting a final expense insurance policy:
Coverage Amount
Consider the amount of coverage you need to cover your end-of-life expenses, such as funeral costs, burial or cremation, and other related expenses. This will depend on your individual circumstances and preferences, but generally, coverage amounts between $5,000 to $25,000 are sufficient for most seniors.
Premiums
Compare premiums between different final expense insurance providers to find an affordable policy that fits your budget. Keep in mind that premiums can vary based on factors such as age, health status, and coverage amount.
Underwriting Requirements
Review the underwriting requirements for each final expense insurance policy, including any medical exams or health questions. Simplified issue policies may be more suitable for seniors with good health, while guaranteed issue policies may be better for those with pre-existing health conditions.
Riders and Additional Coverages
Consider any additional coverages or riders that may be available for final expense insurance policies, such as accidental death insurance or long-term care coverage. These types of riders can provide added protection and peace of mind for you and your loved ones.
Frequently Asked Questions
Question |
Answer |
|---|---|
What is final expense insurance? |
Final expense insurance is a type of life insurance that covers the expenses associated with a person’s death, including funeral costs, burial or cremation, and other related expenses. |
Who is eligible for final expense insurance? |
Final expense insurance is typically purchased by seniors, between the ages of 50 to 85 years old. The policies do not require a medical exam, but may have underwriting requirements based on health status. |
What is the coverage amount for final expense insurance? |
Final expense insurance policies generally provide coverage amounts between $5,000 to $25,000, although some policies may offer higher coverage amounts. |
What is the difference between simplified issue and guaranteed issue final expense insurance? |
Simplified issue final expense insurance policies require applicants to answer a few health questions, but do not require a medical exam. Guaranteed issue final expense insurance policies do not require medical exams or health questions, but may have lower coverage limits and higher premiums. |
How do I choose the best final expense insurance policy? |
Consider factors such as coverage amount, premiums, underwriting requirements, and additional coverages when selecting a final expense insurance policy. Compare policies from different providers to find the best option for your needs and budget. |
Conclusion
Final expense insurance can provide seniors with peace of mind by covering their end-of-life expenses. With so many options available in the market, it’s important to compare policies from different providers to find coverage that meets your specific needs and budget. Consider factors such as coverage amount, premiums, underwriting requirements, and additional coverages when selecting a final expense insurance policy. By doing so, you can ensure that your loved ones are not burdened with the cost of your final expenses.